Cloud Managed Services Market Growth Analysis | 2023-2028

Cloud Managed Services Market Growth Analysis | 2023-2028

Cloud Managed Services Market Growth Analysis | 2023-2028
Report code - SR1873 Delivery - 2 Weeks
Cloud Managed Services Market Size, Share, Trends, Dynamics, Forecast, & Growth Analys See more...

Market Insights

The cloud managed services market was estimated at USD 94.39 billion in 2022 and is likely to grow at a CAGR of 10.20% during 2023-2028 to reach USD 169.97 billion in 2028.

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Market Dynamics

Introduction

The cloud managed services market refers to a segment of the IT services industry focused on delivering management and maintenance of cloud-based resources and applications on behalf of organizations. With the increasing adoption of cloud computing technologies, businesses are seeking ways to efficiently manage their cloud infrastructure, applications, and services while optimizing performance, security, and costs. Cloud managed service providers (MSPs) offer a range of services designed to help businesses leverage the cloud effectively without the need for extensive in-house expertise or resources.

COVID-19 Impact

The COVID-19 pandemic has positively impacted the cloud managed services industry. The adoption of AI, cloud, and big data has increased significantly. Many companies have made new policies and regulations on remote working. Companies are opting for cloud-managed services solutions to manage day-to-day operations remotely, thus boosting the market growth, amid the pandemic.

Market Drivers

The cloud managed services market is driven by a host of factors, some of which are noted below:

Increasing emphasis on mobility along with the requirement to focus mainly on core business functions, key developments in big data, and mobility services are some of the key factors boosting the market growth.

Growing trends of digitalization as well as mobility among enterprises across the globe are likely to create lucrative growth opportunities for the market players.

Limited awareness as well as the absence of internet penetration in some regions are expected to hamper the industry growth during the forecast timeline. Segment Analysis.

The use of communication and collaboration tools has grown to facilitate remote working since the COVID-19 pandemic emerged. The acceptability of advanced technologies has increased rapidly to meet the continuously changing technology needs, such as cloud security, risk and compliance, and others since cost reduction has become a goal for many businesses, even SMEs.

The increase in technological load has enabled managed cloud service providers to diversify their offerings, satisfy rising consumer demand, and accommodate requirements for remote working. The pandemic is therefore anticipated to boost the expansion of this market.

Key Players

The following are the key players in the cloud managed services market (arranged alphabetically)

  • Accenture plc (Ireland)
  • CenturyLink, Inc. (US)
  • Cisco Systems, Inc. (US)
  • DXC Technology Company (US)
  • Ericsson Inc. (Sweden)
  • Fujitsu Limited (Japan)
  • Huawei Technologies Co., Ltd. (China)
  • International Business Machines Corporation (US)
  • NEC Corporation (Japan)
  • NTT DATA Corporation (Japan)

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Segment Analysis

Segmentations

List of Sub-Segments

Segments with High Growth Opportunity

Service Type Analysis

Business Services, Network Services, Security Services, Data Centre Services, Mobility Services

Network Services segment held the largest market share in 2022 and is projected to grow at a robust CAGR in the coming years.

Deployment Type Analysis

Public, Private

Private segment held a significant market share in 2022 & is expected to maintain its dominance during the forecast period.

Regional Analysis

North America, Europe, Asia-Pacific, and Rest of the World

North American market held the highest market share in 2022 and is projected to grow at the fastest CAGR in the coming years.

Service Trends

"Network Services segment held the largest market share in 2022."

  • The market has been classified as business services, network services, security services, data center services, and mobility services.
  • Under these, the Network Services segment held the largest market share in 2022 and is projected to grow at a robust CAGR in the coming years.

Deployment Trends

"Private segment held a significant market share in 2022."

  • The market has been bifurcated into public and private. Under these, the private segment held a significant market share in 2022 & is expected to maintain its dominance during the forecast period.
  • The private cloud offers various benefits to enterprises which include access control and increased data security.
  • This model further offers the company benefits including cost efficiency and reliability, which further boosts the segment growth.

Regional Insights

"The North American market held the highest market share in 2022."

  • The North American market held the highest market share in 2022 and is projected to grow at the fastest CAGR in the coming years.
  • This is ascribed to the large presence of major players, including Google, IBM, Cisco Systems, etc. With high internet penetration and a rising shift to cloud-based services from remote infrastructure, which bolsters the regional market growth during the review period.

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Recent Development

On 4 May 2023, VMware introduced VMware Cross-Cloud managed services, offering prescriptive offers with enhanced partner and customer benefits. This ecosystem enables skilled partners to expand managed services practices, improve partner profitability, and open growth opportunities.

In May 2023, Zain KSA expanded its partnership with Netcracker Technology, adding cloud-based managed services to Netcracker Digital BSS, Digital OSS, and Customer Engagement. This largest Middle East digital transformation project aims to enhance customer experiences and offer 5G products and services.

On 5 May 2023, Canadian Bell acquired Montréal-based FX Innovation, a managed and professional services provider, for technology M&A deal number 139. The acquisition will expand Bell's expertise in managed cloud and professional services, expand FX Innovation's geographic footprint, and allow both companies to scale their businesses.

Research Methodology

  • This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s cloud managed services market realities and future market possibilities for the forecast period.
  • The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
  • The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
  • This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
  • More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
  • We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

  • Market structure: Overview, industry life cycle analysis, supply chain analysis.
  • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
  • Market trend and forecast analysis.
  • Market segment trend and forecast.
  • Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
  • COVID-19 impact and its recovery curve
  • Attractive market segments and associated growth opportunities.
  • Emerging trends.
  • Strategic growth opportunities for the existing and new players.
  • Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The cloud managed services market is segmented into the following categories:

By Service Type

  • Business Services
  • Network Services
  • Security Services
  • Data Centre Services
  • Mobility Services

By Deployment Type 

  • Public
  • Private

By End-Use Type

  • Telecom & ITES
  • Government (State & Local, Federal) & Education
  • BFSI
  • Retail & Consumer
  • Healthcare
  • Manufacturing & Automotive
  • Other

By Region

  • North America (Country Analysis: The USA, Canada, and Mexico)
  • Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
  • Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
  • Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Customization Option

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

  • Detailed profiling of additional market players (up to 3 players)
  • SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

  • Benchmarking of key players on the following parameters: Technology portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Frequently Asked Questions (FAQs)

Cloud managed services is generally referred to an outsourcing function, where in house functionalities of a company are outsourced, which is to be managed by a managed service provider (MSP) on cloud. These outsourced services enable the enterprises in becoming more competent by bringing in skills they lack. Managed service on cloud also aids business owners to replace the functions which are expensive.

The cloud managed services market was estimated at USD 94.39 billion in 2022 .

The cloud managed services market is likely to reach USD 169.97 billion in 2028.

North American market held the highest market share in 2022 and is projected to grow at the fastest CAGR in the coming years.

The cloud managed services market is likely to grow at a CAGR of 10.20% during 2023-2028.

The key players operating in the market are Ericsson Inc. (Sweden), Accenture plc (Ireland), Cisco Systems, Inc. (US), International Business Machines Corporation (US), Huawei Technologies Co., Ltd. (China), NEC Corporation (Japan), Fujitsu Limited (Japan), DXC Technology Company (US), NTT DATA Corporation (Japan), and CenturyLink, Inc. (US).

Network Services segment held the largest market share in 2022 and is projected to grow at a robust CAGR in the coming years.

The major factors driving the growth of the cloud managed services market are growing trends of digitalization as well as mobility among enterprises across the globe are likely to create lucrative growth opportunities for the market players & Increasing emphasis on mobility along with the requirement to focus mainly on core business functions, key developments in big data, and mobility services are some of the key factors boosting the market growth.